Tim Lee Tim Lee is the VP of corporate development and legal affairs at Olive Hill Group.

Investors are starting to focus on quality investments as we grow longer in the cycle. Fundamentals remain strong and the economy continues to grow, but investors are recognizing that the end of the cycle could be nearing and, as a result, are adopting more stable investment strategies. This flight to quality means fewer opportunistic transactions and more competition for premium assets in core locations and in growth areas.

“As interest rates increase, there is a flight to quality. We are seeing the same thing happen in the stock market where we are seeing some quality stocks are becoming more favored over the riskier stocks,” Tim Lee, VP of corporate development and legal affairs at Olive Hill Group, tells GlobeSt.com. “We are seeing the same thing in real estate, and that is because we are getting to the end of the cycle. We don't know when it is going to end, but no one wants to be caught holding an opportunistic asset when the music stops playing. As a result, we are seeing more of a focus on core locations, growth areas, premium assets and on owning assets that are best-in-class for the area. That is a way that people are hedging against the potential downturn.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.